Beef-on-dairy has been a common genetic management strategy for several years. The beef supply chain values high-quality beef-cross calves and the many benefits they offer to its stakeholders. When we think about how cattle move through a dairy and the supply chain, a benefit of the beef cross is that the dairy industry offers a consistent, traceable supply. However, this does not make every beef cross highly valued. It takes good genetics, solid management and a positive reputation to capture the most value from your beef-on-dairy program.
Dairy producers have been involved in the beef supply chain all along when you consider the cull cows and bull calves being sold, but the marketplace is changing. However, as you strive to ship high-quality milk, you should also focus on creating the highest-quality beef-cross calves you can. Your beef-on-dairy program is too important of a revenue stream to not consider the genetics you are using and maintaining the best management practices.
As dairy producers become more involved in the beef supply, it is key to familiarize yourself with the beef supply chain nuances. While you are an expert on all of the milk-processing lingo, the beef terminology may still be foreign. Our aim with this article is to help you become a more informed part of the beef supply chain and understand how to maximize revenue through that understanding (see graphic).
Genetics and environment impact meat quality
Everything starts with genetics, so it is vital to begin with the end in mind. For beef-cross calves, that end is on a plate at a consumer’s table. Packers are working with retailers and consumers to understand what they need and want for a variety of things – tenderness, flavor, the fat content of a burger or a steak, etc. This is why dairy producers must use genetics designed with those desires in mind to determine the path and pregnancy of an animal.
Genetics are additive, cumulative and permanent, which is key to remember with the longer generational interval of cattle. Setting a breeding plan and tweaking it as needed leads to faster genetic progress. Heading down the path of popularity or choosing to base genetic selection on the next fad in the industry could slow down the genetic progress you make. Remember, genetics are the start of everything, so make sure they are the right ones for your operational goals.
While genetics are a huge factor in an animal’s performance, its environment plays an equally important role. Producers should strive to match an animal's genetic potential with a proper management program to achieve the highest level of success in performance. An animal’s phenotype or performance is a combination of its genotype plus its environment. It could be said that an animal’s highest genetic potential is when it is still in a straw of semen. That’s why it is critical to make sure your beef-cross calves live in an environment that promotes the highest expression of their genetic potential.
Key profit drivers of the beef supply chain
Components, volume and milk quality are just a few driving qualities for producing milk. Just like milk markets, the beef supply chain has key profit drivers. Because dairy producers’ products enter the commodity market, you must accelerate genetic progress in the areas that matter to your market and differentiate yourself. You don’t want to just be another commodity in the marketplace.
Thus, understanding the beef supply chain’s key profit drivers is what could help you separate yourself from the rest of the beef-cross calves. When looking to maximize revenue from your beef-on-dairy program, consider beef genetics and management practices that perform well for feed efficiency, carcass traits and growth traits. Those categories most positively impact profitability from post-weaning to finish. Even if you are selling day-olds, you should be thinking about those categories, since that’s what stakeholders further down the chain care about.
Again, consistent and traceable supply is a benefit that beef-on-dairy brings to the table. Buyers keep track of where good-performing calves come from and where they don’t. Poor-performing calves are less desirable in poor market conditions. While you might not see it today, you could as markets shift. So, be sure your beef-cross calves are of the highest quality because good-performing cattle are always rewarded and sought after in the beef supply chain.
Maximize beef-on-dairy revenue
Here is how the beef supply chain works: Cattle feeders expect fast-growing, healthy cattle that convert feed to pounds of carcass weight efficiently. Packers expect as much high-quality carcass weight as they can get for every hook space in their plants. Consumers expect an exceptional eating experience. Producing cattle that perform well in these systems will lead to rewards.
There's no need to worry. There are tools available to help you achieve the demand of the beef supply chain. Here are a few considerations to ponder:
- Utilize beef genetics proven to perform well in the beef supply chain’s key profit drivers.
- Be cautious of single-trait selection, and focus on supply chain profitability by using a properly designed beef-on-dairy index.
- Understand dairy cattle strengths and weaknesses as they relate to the beef supply chain.
- Create a focused breeding strategy that optimizes both milk and beef revenue streams.
- Accelerate genetic progress with genomic testing and use a custom index to identify the females who will create the next generation and the animals to breed to beef.
- Partner with a genetics company with a focused beef-on-dairy program rather than using just any old beef bull.
Beef-on-dairy will only continue to grow. Are you maximizing your opportunity to profit by putting the tools available to you to work?
